Finder's pick: American Express® High Yield Savings
- No monthly fee
- Competitive APY
- No minimum balance
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If you’re saving toward multiple goals, you might find it hard to keep on top of them in a single savings account. One way to organize your goals is to open a savings account for each.
Most banks and credit unions allow you to open more than one savings accounts, providing an effective way to streamline your finances with easy access among them. However, you’ll want to carefully read the terms and conditions of your accounts to avoid surprises down the road.
Whether you stick with the same bank or open accounts across institutions, potential drawbacks include:
Take a quick look at these four savings accounts from different banks or use the table below to compare accounts with the features you’re looking for.
It all depends on your financial circumstances and goals. Multiple accounts can make balancing several short-term and long-term savings goals easier. If you receive income from multiple sources, you may find it easier to transfer payments from each source into separate accounts to save toward specific goals.
But if you’re organized, able to prioritize goals and have no problem keeping track of your money, one savings account could be all you need.
Your deposits of up to $250,000 are protected as long as they’re held in a bank or other financial institution insured by the FDIC. If your balance across accounts held at one institution exceed $250,000, you’re protected for $250,000 only.
To maximize the FDIC’s insurance, consider depositing your funds at another institution after you hit the $250,000 limit. Also, because limits are per account holder, you can put one of your accounts in your spouse’s or another beneficiary’s name to insure your balances beyond the limit.
Banks and financial institutions often offer incentives — gifts, higher interest rates or other bonuses — to stand out from competitors, though nearly always with restrictions.
For instance, most banks allow only one bonus offer per person, and current customers are typically excluded. Which means if you’ve already got an account with a bank, opening another to get that bank’s bonus offer typically won’t work.
Many financial institutions also limit how many accounts of one type you’re able to sign up for. For example, you may be allowed only one high-interest savings account.
As long as you’re earning interest and growing your savings, it doesn’t matter how many accounts you have. But multiple accounts can be a way to streamline and organize your goals.
When weighing savings accounts, compare interest rates, fees and features to find the best you’re eligible for.
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